Financial Markets I Final Project Rubric

% Pts <69% 70- 89% >90%

Need Improvement Meets Expectations Exceptional

Option Pricing Black Scholes Model
in Excel 1. Basic knowledge about Excel
(open/close/save a file).
2. Introduce data into the Excel
file
150 pts 3. Introduce data about the
parameters of Black-Scholes
model: stock price, exercise
price, volatility, risk free rate
and maturity
4. Obtain d1 and d2 parameters
dynamically by using a
formula that includes the
following Excel functions: LN,
SQRT, / and +.
5. Incorrect or incomplete
information about N(d1),
N(d2), N(-d1) and N(-d2).
Does not know NORM.S.DIST
Excel function
6. Incorrect or incomplete
formulas about call and put
option prices.
7. Search Microsoft stock price
information on Yahoo Finance
8. Introduce the specified
parameters in Excel (point 2)
9. Incorrect or incomplete
information about call and put
option price
Binomial Option Pricing
Binomial Option Pricing Model Model in Excel
in Excel
1. Introduce the parameters of
BOPM in Excel: stock price,
exercise price, volatility, risk
free rate and maturity
2. Calculate upward movement
(u) and downward movement
(d) using EXP and SQRT and /
functions.
Black Scholes Model
1. Basic knowledge about Excel
2. Introduce data into the Excel
file
3. Introduce data about the
parameters of Black-Scholes
model: stock price, exercise
price, volatility, risk free rate
and maturity
4. Obtain d1 and d2 parameters
dynamically by using a
formula that includes the
following Excel functions:
LN, SQRT, / and +.
5. Obtain N(d1), N(d2), N(-d1)
and N(-d2) parameters using
NORM.S.DIST Excel function 5.
6. Obtain the call and put
option prices by applying the
formula in Excel. Know how
to use EXP function.
7. Search Microsoft stock price
information on Yahoo
Finance
8. Introduce the specified
parameters in Excel (point 2)
9. Obtain the call and put
option prices as required in
point 2
1. Introduce the parameters of
BOPM in Excel: stock price,
exercise price, volatility, risk
free rate and maturity
2. Calculate upward movement Binomial Option Pricing
(u) and downward movement
(d) using EXP, SQRT and / Model in Excel
functions.
Black Scholes Model
1. Basic knowledge about
Excel
2. Introduce data into the
Excel file
3. Introduce data about the
parameters of Black-
Scholes model: stock price,
exercise price, volatility,
risk free rate and maturity
4. Obtain d1 and d2
parameters dynamically by
using a formula that
includes the following
Excel functions: LN, SQRT,
/ and +.
Obtain N(d1), N(d2), N(-
d1) and N(-d2) parameters
using NORM.S.DIST Excel
function
6. Obtain the call and put
option prices by applying
the formula in Excel. Know
how to use EXP function.
7. Search Microsoft stock
price information on Yahoo
Finance
8. Introduce the specified
parameters in Excel (point
2)
9. Obtain the call and put
option prices as required in
point 2
10. Provides other solution for
implementing Black-
Scholes Model than the one
indicated the example file
11. Implements Black Scholes
Model in VBA
% Pts <69%
3. Calculate probability of
upward movement (Pu) and
probability of downward
movement (Pd) using EXP, *
and – functions
4. Calculate the simulated stock
price considering the upward
movement. Use EXP function
5. Calculate the simulated stock
price considering downward
movement.
6. Calculate payoffs. Use MAX
function
7. Incorrect or incomplete call
and put option price according
to BOPM model
70- 89%
3. Calculate probability of
upward movement (Pu) and
probability of downward
movement (Pd) using EXP, *
and - functions
4. Calculate the simulated stock
2.
price considering the upward
movement. Use EXP function
5. Calculate the simulated stock
price considering downward
movement.
6. Calculate payoffs. Use MAX
function
7. Obtain call and put option
price using BOPM
8.
>90%
1. Introduce the parameters
of BOPM in Excel: stock
price, exercise price,
volatility, risk free rate and
maturity
Calculate upward
movement (u) and
downward movement (d)
using EXP, SQRT and /
functions.
3. Calculate probability of
upward movement (Pu)
and probability of
downward movement (Pd)
using EXP, * and -
functions
4. Calculate the simulated
stock price considering the
upward movement. Use
EXP function
5. Calculate the simulated
stock price considering
downward movement.
6. Calculate payoffs. Use
MAX function
7. Obtain call and put option
price using BOPM
8. Implements BOPM in VBA
 % Pts <69%
Forecast Oil Price 1. Download data about oil price
Evolution evolution from Quandl.
Download in Excel format.
2. Make an Excel graph with oil
price evolution
3. Identify a possible trend
150 pts 4. Calculate MIN, MAX and
AVERAGE oil price
5. Incorrect or incomplete
information about factors that
influenced oil price evolution
6. Incomplete strategy for
projecting oil price evolution
7. Does not provide forecasts
based on his expert judgement
8. Does not provide a final
forecast using Excel models or
functions
9. The final forecast is far from
the real value.
10. ((forecasted value – real
value)/forecasted value) >
0.25
70- 89%
1. Download data about oil
price evolution from Quandl.
Download in Excel format
2. Make an Excel graph with oil
price evolution
3. Identify a possible trend
4. Calculate MIN, MAX and
AVERAGE oil price
5. Factors that influenced oil
price evolution
6. Strategy for oil trading
7. Provides forecasts based on
its expert judgement
8. Forecasts oil price evolution
using Excel. Implements a
regression, moving average,
trendline or other statistical
methods
9. 0.10< ((forecasted value –
real value)/forecasted value)
< 0.25
>90%
1. Download data about oil
price evolution from
Quandl. Download in Excel
format.
2. Make an Excel graph with
oil price evolution
3. Identify a possible trend
4. Calculate MIN, MAX and
AVERAGE oil price
5. Factors that influenced oil
price evolution
6. Strategy for oil trading
7. Provides forecasts based on
its expert judgement
8. Forecasts oil price
evolution using Excel.
Implements a regression,
moving average, trend line
or other statistical methods
9. ((forecasted value – real
value)/forecasted value) <
0.10
10. Combines with success its
expert judgment and Excel
forecasts
11. Forecasts oil price using
VBA